Standard Chartered released a major update to cut more than 7,000 jobs over the next four years, as it increasingly uses artificial intelligence.
One of the prominent global banks has laid out plans to cut its workforce, underlining AI as a driver to make its operations streamline as it seeks to expand its profitability and remain competitive.
The company confirmed on Tuesday it would cut 15% of its office-roles by 2030. This would result in about 7,800 verbosity out of its more than 52,000 staff in such roles.
According to Chief Executive Bill Winters, the most affected roles will be those included in Chennai, Bengaluru, Kuala Lumpur, and Warsaw.
In this connection he said: “It’s not cost-cutting. It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in.”
The significant move taken by StanChart’s is to restructure operations and aims to boost profitability and efficiency, following a trend where international firms utilize AI models to enhance workforce management.
Similarly, global leaders are also heading to integrate new AI models and tackle rising cyber security threats. The update came as StanChart attempted to quell market volatility about succession planning after Winters’ 11-year stint at the helm, with the board closely overseeing how the latest strategy will unfold.
The renowned bank is closely monitoring stronger growth as geopolitical uncertainty persists for some of its key markets. In line with analysts’ expectation, Asia-Pacific banks specifically need to raise loan-loss provisions amid the Iran conflict as rising costs and weaker growth distressed borrowers.
While staying at a safe place, StanChart set aside $190m in preventive measures linked to the Middle East conflict in the first three months of the year. Winters said that they are “extremely resilient” to the impact of geopolitical and market risks as they work to achieve the desired results.
